D. Profit earned by the government from printing currency
Answer: Option D
Solution (By JKSSB Mock Tests)
Seigniorage is the difference between the face value of money and the cost of producing it; it represents the real resource gain to the government from issuing currency.
Explanation:
Base effect refers to the impact of the price level of the previous year (base) on the calculation of the inflation rate in the current year.
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